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By Vincent Paige - Realtor | Agent in Orlando, FL

Is a Home Warranty Worth It | Dr. Phillips Realtor Vince paige


A home warranty is a warranty on the appliances and mechanical systems of your home, such as a furnace, and is most often offered for the first few years of a home and most people suggest that you don’t get it because of its cost. When you consider what can possibly break in your home and how much the deductible is, there aren’t going to be many things breaking that the warranty will cover. It will, however, become useful if something catastrophic happens which is the point of insurances anyway, right? So, why should you get a home warranty?

You’re Likely Cash Strapped Right After Closing

It’s very likely that you won’t have a lot of cash on hand right after closing because you’ll put as much as you can towards the initial downpayment, so it’s crucial that you get some sort of protection if there’s a larger than marginal chances something bad could happen. Now, if all of your appliances are brand spanking new and the building is brand new, you can probably skip on the warranty. If you have a 15 year old water heater or a 20 year old HVAC, you might want to consider the relatively small cost of the home warranty as a hedge against a bad situation. Now, a busted water heater or failing HVAC isn’t a hazardous situation (you can work around both of those), but imagine if your roof collapsed or if you discovered termite infestation missed by the inspector – now you’re talking dangerous situations you need to have resolved ASAP (assuming the warranty covers it). Different warranties cover different things, so if you do get one, be sure to double check what it covers.

Peace Of Mind Is Priceless

You might say that this is what the warranty companies want you to believe, that you’re not buying insurance but instead buying peace of mind and you’d be right – it’s what warranty companies say but it doesn’t make it untrue. Some people worry more than others and for those folks, warranty buys them peace of mind and likely a few more years in their life, don’t discount that. Peace of mind is a wonderful thing when you don’t have it and if you can get it on the cheap, by all means get it!

Happy House Hunting!

Vincent Warren Paige, Jr.
REALTOR® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
E-mail: vpaige1@yahoo.com


By EFreeman,  Mon Feb 4 2013, 20:25
Perhaps our experience with American Home Shield can help other homeowners decide whether or not an AHS home warranty is worth purchasing. Three months after we moved into our home, water began to leak within the walls between the second story laundry room and the first story dining room. After pocketing the service fee and cutting multiple holes in the sheetrock, the AHS contractor determined there were two leaks in plumbing, and AHS denied the claim as a “pre-existing condition.” They quoted an exorbitant amount for repairs, which we declined, and then refused to repair the holes they had cut into the sheetrock to diagnose the problem. I can appreciate that it might be necessary to open the wall to find a leak; I was appalled that they thought they could cause damage as part of a diagnosis (for which we paid a service fee) that they felt no responsibility to restore to the condition in which they found it. We had to repair the leaks and sheetrock at our own expense.

Two months later, whenever a second story toilet was flushed, water began flowing out of the first floor kitchen light fixture immediately below. AHS Contract Service collected the service fee, and cut a 2 ft square hole in the kitchen ceiling sheetrock to determine that the problem was the toilet. Again, AHS denied our claim, this time without even providing a reason as to why. The contractor quoted an amount of $300 for repairs, which we accepted and paid out of pocket, with their assurance that they would repair both the toilet and the sheetrock hole for this price. This contractor advised us that he would have charged a customer dealing directly with his company just $60 for the repair, but that because the service request had been made through AHS, this identical job would now cost us $300, five times as much. They repaired the toilet, then came back once with the wrong sheetrock thickness, promising to return the next day with the correct thickness. We never saw or heard from them again. We then paid a reliable business to to repair the sheetrock at our own expense.

Apparently, American Home Shield's business model is to (1) exclude all reasonable repairs with their contract, (2) send contractors who not only fail to make agreed-upon and paid-for repairs but cause further damage to a home, and (3) bill their captive victims at multiples of the market price. In short, skilled lawyers, incompetent contractors, and dishonest businesspeople: that's American Home Stealed in a nutshell.

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